Abstract

The acquisition of fixed assets during the business expansion or retention is a complex and ambiguous task. Maritime transportation companies often consider the option of acquiring ships on the aftermarket. This option is supported by the long service life of marine vessels may being in successful operation for 40 years or more from the time of vessel launching. Marine vessel is also characterized by demolition cost, which is the cost to the company of destroying a large industrial facility like the marine vessel. This effect forms the features that must be taken into account when business planning a project to purchase a marine vessel. The article analyzes in detail the effect of demolition cost on decision making based on interest rate.

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